DHN Joint Venture Continues to Affirm its Pioneering Position in Vietnam's Livestock Sector

Prime Minister Pham Minh Chinh Witnesses Key Partnership Between De Heus and Hung Nhon, Emphasizing Future of Vietnam's Livestock Industry

During his working visit to the Netherlands, Prime Minister Pham Minh Chinh held a meeting with the Global CEO of De Heus Group, Mr. Koen De Heus, and witnessed the signing ceremony of a Memorandum of Understanding (MoU) on strategic cooperation and partnership between De Heus and Hung Nhon Group. The Prime Minister's presence at these two significant events clearly demonstrates the paramount importance of Vietnam's future livestock industry development strategy.

Realizing the Goal of Elevating Vietnam's Livestock Sector

Speaking at the meeting with Mr. Koen De Heus, Global CEO of De Heus, Prime Minister Pham Minh Chinh highly praised De Heus Group's contributions in Vietnam, especially following De Heus's 100% acquisition of Masan's animal feed production segment, along with a series of sustainable agricultural development projects through their joint ventures with Hung Nhon Group to form DHN High-Tech Agricultural Complexes. Based on these results, the Prime Minister requested De Heus Group, with its strength in modern agricultural development, to continue investing even more robustly in Vietnam.

In response to the Prime Minister, Mr. Koen praised the potential and advantages of Vietnam's agricultural sector. He noted that this has been Vietnam's strength in attracting Foreign Direct Investment (FDI) into agriculture recently. Building on the results assessed by Prime Minister Pham Minh Chinh, De Heus will continue to boost its investments in Vietnam with the goal of elevating the agricultural sector in general, and the livestock industry in particular, to an international level.

On the same day, Prime Minister Pham Minh Chinh and the Government delegation, including Minister of Agriculture and Rural Development Le Minh Hoan, Minister of Planning and Investment Nguyen Chi Dung, and Minister of Foreign Affairs Bui Thanh Son, witnessed the signing ceremony of a Memorandum of Understanding (MoU) between De Heus and Hung Nhon.

Attending the signing ceremony were, from De Heus, Global CEO Mr. Koen De Heus, along with Mr. Gabor Fluit (Asia Regional General Director) and Mr. Johan van den Ban (General Director of De Heus Vietnam). Representing Hung Nhon Group was Mr. Vu Manh Hung, Chairman of the Board of Directors and General Director.

Key Contents of the MoU

According to the main contents of the MoU, De Heus and Hung Nhon will develop plans for cooperation and project development in agriculture, including:

• Livestock and Poultry Breeding: Focusing on high-quality breeding stock.
• Raw Material Development: Cultivating raw materials (corn, cassava) to supply the animal feed production sector.
• High-Tech Agricultural Production Value Chain: Building a high-tech agricultural production value chain modeled after Dutch cooperatives in Vietnam.

Specifically for the high-quality livestock and poultry breeding sector for the Vietnamese market, the two parties will develop a high-tech livestock value chain model for the 2022-2030 period. Under this agreement, Hung Nhon will invest in building large-scale, modern livestock farms that adhere to advanced global standards. Meanwhile, De Heus will supply these farms with high-quality pig and chicken breeds according to international standards.

The ambitious goal for 2030 is to achieve a capacity of approximately:

• 10,000 great-grandparent and grandparent breeding pigs in the Central Highlands.
• 200,000 commercial sows in the Southeast, South Central Coast, and Central Highlands regions.
• 58 million breeding chickens and 25 million broiler chickens in Tay Ninh.

A Model Partnership

Following the signing ceremony of the MoU, Mr. Le Minh Hoan, Minister of Agriculture and Rural Development, highly praised the cooperation model between De Heus and Hung Nhon, especially their DHN joint venture. With over 10 years of collaboration, De Heus and Hung Nhon have solidified their position in high-tech agricultural production. Through the sustainable development of an agricultural ecosystem from farm to table, they are contributing to a more stable, sustainable, and prosperous Vietnamese agriculture.

Regarding the newly signed MoU between these two leading agricultural groups from the Netherlands and Vietnam, Minister Hoan noted that both companies have been successfully implementing numerous large-scale livestock projects and complexes across the country, particularly in the Central Highlands region. He stated that this serves as a foundation for the two groups to achieve further success in development projects as outlined in the recently signed MoU. Furthermore, DHN's success also symbolizes the excellent cooperative relationship between Vietnam and the Netherlands.

Minister Le Minh Hoan expressed particular enthusiasm for the MoU content regarding the plan to build a high-tech agricultural production value chain modeled after Dutch cooperatives in Vietnam. He stated, "If successfully applied, this model will help not only businesses but also farmers get rich on their own land."

Speaking about Hung Nhon Group, De Heus's main partner in Vietnam, Mr. Koen De Heus remarked, "Hung Nhon is a reputable and professional enterprise in the livestock sector in particular and agriculture in general. Specifically, Hung Nhon's operating model aligns with our development plan to expand business operations with the goal of becoming a companion to livestock farmers and businesses in Vietnam's livestock sector."

It is known that De Heus is a world-leading agricultural group with 110 years of experience, currently owning globally renowned brands such as De Heus, Windmill, and Koudijs. The group operates over 100 modern factories worldwide, with products exported to more than 75 countries and territories. In Vietnam, De Heus owns 23 factories equipped with cutting-edge automated technology lines, supervised by international experts to ensure production according to ISO 22000 and Global GAP standards.

As the head of De Heus in Vietnam, Mr. Johan van den Ban stated that the DHN joint venture's goal is to become a reliable partner in the agricultural value chain. From there, they aim to support livestock farmers, farms, and feed distributors and agents in developing sustainably together.

"Cooperating with De Heus is an opportunity for Hung Nhon to receive support in De Heus's advanced livestock technology. From there, we can develop Hung Nhon's large-scale agricultural projects, especially by applying the highly successful Dutch agricultural cooperative model in Vietnam, in line with the Ministry of Agriculture and Rural Development's policy," Mr. Hung explained his reasons for collaborating with De Heus.

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